PERNOD RICARD - 2018-2019 Universal registration document

4.

RISK MANAGEMENT Risks and disputes: provisioning procedure

Resources provided by the Group tomanage the consequences of a claim, 4.3.3 especially in the case of an industrial accident If a claim were to be filed affecting Pernod Ricard or a Group company, management and resolution of the claim. All these players have the especially in the case of an industrial accident, it would rely on its brokers experience and means required for managing exceptional situations. and insurers and all service providers as required to ensure the effective Risks and disputes: provisioning procedure 4.4

As part of its commercial activities, Pernod Ricard is involved in legal of an amount that can be reliably estimated. The amount of the provision actions and subject to tax, customs and administrative audits. The Group is the best estimate of the outflow of resources required to extinguish only records provisions for risks and contingencies when it is likely that a this liability. Provisions accordingly involve an assessment by Group current obligation stemming from a past event will require the payment Management.

Financial and accounting information 4.5

Preparation of the Group’s 4.5.1 consolidated financial statements In addition to the management information described above, the Group prepares half-year and annual consolidated financial statements. This process is managed by the Consolidation Department attached to the Group’s Finance Department, as follows: communication of the main Group accounting and financial policies — through a procedures manual; preparation of specific instructions by the Consolidation Department, — including a detailed timetable, and issuance to the affiliates prior to each consolidation; consolidation by sub-group; — preparation of the consolidated financial statements on the basis of — the information provided, to cover the entire scope of consolidation; and use of a single software package by Group affiliates. The maintenance — of this software package and user training are carried out by the Group’s Finance Department, with occasional assistance from external consultants. In addition, consolidated affiliates sign a letter of representation addressed to the Statutory Auditors, which is also sent to the Headquarters. This letter is binding on the Senior Management of each consolidated affiliate with regard to the accuracy and completeness of the financial information sent to the Headquarters in respect of the consolidation process.

Preparation of Pernod Ricard’s 4.5.2 financial statements Pernod Ricard prepares its financial statements in accordance with applicable laws and regulations. It prepares the consolidation package in accordance with the instructions received from the Company’s Finance Department.

Paris, 28 August 2019 Mr Alexandre Ricard Chairman and CEO

142

2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT